DOJ's JetBlue trial report causes Spirit Airlines stock to plummet
Spirit Airlines' stock fell 2% after reports that the Department of Justice (DOJ) intends to proceed with its trial to block the JetBlue deal, despite a recently announced divestiture plan. The DOJ maintains that divestitures cannot resolve the competition concerns arising from the merger. JetBlue has offered concessions, but the DOJ believes the merger is not "fixable." The trial is scheduled for October 16th, and JetBlue has already announced the transfer of Spirit Airlines' holdings and facilities to Allegiant Travel Company and Frontier to promote ultra-low-cost carrier growth.